ReNew Power raises USD 375 million via green bonds

Clean energy firm ReNew Power on Thursday said it has
concluded a green bond issue of $375 million, which would be used for capital
expenditure on green projects and refinancing external commercial borrowings.
The five-year non-call two notes were offered at a yield of 6.67 per cent per
annum, a company statement said.

The bond offer has been rated as BB by Fitch Ratings, the
statement said.

The capital raised through the green bond issue will be
utilised for refinancing outstanding external commercial borrowings and as
capex in eligible green projects.

Barclays (B&D), Goldman Sachs, HSBC, JPMorgan and YES
Bank were the book runners for the green bond issue.

The dollar-denominated bonds received excellent response and
were fully subscribed by leading fund managers, asset managers, banks and
pension and life funds from across the US, Europe and Asia, the company said.

The issue was opened for subscription on March 5 and closed
on the same day.

“Our history of financial prudence, investing in
high-quality assets and creating value for all our stakeholders has enabled us
to regularly raise funds to fuel our rapid growth. We are happy that our bond offering
received such an enthusiastic response, especially when the renewables sector
is facing challenges in raising capital,” ReNew Power Chairman and
Managing Director Sumant Sinha said in the statement.

“The renewables market in India is firmly established
and is growing rapidly. ReNew Power is India’s largest IPP with more than 7,000
MW of commissioned and under-construction wind and solar projects,” he said.

ReNew Power Deputy Chief Financial Officer Kailash Vaswani
said: “The bond issue was in line with our strategy of diversifying debt
sources. The issuance enabled us to fix our interest rate risk and achieve a
lower pricing than existing borrowing costs. The international bond investors
have seen us deliver on committed performance and, hence, have come forward to
invest in our new issuance.”

Source: PTI

If you really appreciate our work and love our cherry picked stories Follow us on Twitter, Like Us onFacebook and Subscribe ourYouTube Channel.